📚 Learning Guide
Business Strategy
easy

A business strategy is solely focused on maximizing short-term profits, regardless of the long-term implications for the organization.

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Learning Path

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A

True

B

False

Understanding the Answer

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Answer

Focusing only on short‑term profits can hurt a company because it ignores future costs, lost customers, and damaged reputation. When a firm cuts research, skimpers on quality, or burns through cash for quick gains, it may win a few sales now but lose loyal customers and face legal or regulatory problems later. The long‑term health of the business depends on investing in people, technology, and brand trust, which builds sustainable revenue. For example, a phone maker that cuts safety testing to save money may sell many units initially, but later recalls and lawsuits can wipe out those profits and damage the brand for years. A balanced strategy that balances current earnings with future growth is healthier for the organization.

Detailed Explanation

A strategy guides a company’s long‑term actions and goals. Other options are incorrect because The misconception is that profits alone are the goal.

Key Concepts

Business Strategy
Competitive Advantage
Long-term Planning
Topic

Business Strategy

Difficulty

easy level question

Cognitive Level

understand

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